March 10 (Reuters) - The U.S. solar market added fewer new installations in 2025 compared to the year before, a study showed on Tuesday, pointing to cooling momentum across the sector after President Donald Trump scrapped subsidies and tax breaks for renewable energy developers.
The solar market installed 43 gigawatts in new capacity last year, compared to nearly 50 GW in 2024, according to a study by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
The administration's One Big Beautiful
Bill Act has led to an industry-wide disruption, with utility-scale solar installations declining 16% and community solar declining 25% in 2025, the report said.
The solar industry is contending with tariff pressures and a freeze on approvals for major projects under the current administration, reflecting an energy agenda focused on oil, gas, coal and nuclear and marking a shift from Joe Biden's green policies.
Still, solar and energy storage accounted for 79% of new capacity additions in the first year of the Trump administration, with more than two-thirds of installations occurring in states won by him, the report said.
Texas led with 11 GW of new solar capacity, followed by Indiana, Florida, Arizona, Ohio, Utah and Arkansas.
Solar power remains economically competitive, especially as electricity demand from data centers dedicated to AI surges to record highs, the report said.
"Washington must deliver policy certainty for the market to work and to keep pace with growing energy demands," said SEIA interim President and CEO Darren Van't Hof.
"Without this certainty, less solar will get built and Americans will pay the price with higher energy bills."
The report estimates the U.S. would add 490 GW of new solar capacity by 2036, taking the cumulative installed capacity to nearly 770 GW.
"It's clear that solar will continue to be the dominant source of new power capacity in the U.S., even as gas generation continues to grow," Michelle Davis, head of solar at Wood Mackenzie, said in the report.
(Reporting by Pranav Mathur in Bengaluru; Editing by Shilpi Majumdar)
